Washington - The rate that digital retailers like Apple's (NASD: AAPL) iTunes must pay songwriters and music publishers will stay the same under a decision handed down Thursday by the Copyright Royalty Board (CRB), which rejected the publishers' petition for a 66% rate hike. The decision to freeze royalty rates at 9 cents per song for songwriters and music publishers comes as it was revealed this week by Fortune magazine, that Apple said in a letter sent to the CRB last year it might shutter its iTunes music store should it have to incur any increase in music royalties that would make the store unprofitable.

New York - In a statement filed with the Copyright Royalty Board (CRB) last year, Apple (NASD: AAPL) threatened to shut down its iTunes Store should the board increase in the royalty rates that would make the Web store unprofitable -- a move the board may make tomorrow, Fortune reported. Songwriters and music publishers have petitioned the CRB to increase their royalty payments by six cents per song, a hike opposed by Apple and others including the major record labels, who favor paying instead a percentage of total revenues ranging from 6% to 8%.

Washington - The U.S. House of Representatives unanimously passed the Webcaster Settlement Act on Saturday, which would allow webcasters and copyright holders to continue to negotiate royalty payments for streaming music online after Congress suspends its routine business after this week for the elections. A Senate vote on the measure is expected today or yet this week.

Washington - The major record labels, music publishers and large webcasters on Tuesday announced a breakthrough agreement on royalty payments for interactive streaming and limited digital downloads, which will for the first time see mechanical royalty payments on these services. Under the agreement, which was submitted as draft regulations to the Copyright Royalty Board, providers of limited download and interactive streaming services -- including subscription and ad-supported services -- will generally pay a mechanical royalty of 10.5% of revenue, with minimum payments in certain circumstances.

New York - The major players in contentious negotiations over digital music royalties, which pit music publishers, record labels and digital music services against one another, have reached a settlement on two of five major issues, Billboard reported, citing an account from David Israelite, president and CEO of the National Music Publishers Association (NMPA).

Washington - As it continues to await the approval of the Federal Communications Commission to complete its multi-billion-dollar merger with Sirius (NASD: SIRI), XM Satellite Radio (NASD: XMSR) on Monday reported a higher first-quarter loss, despite a healthy gain in subscribers.

Washington - Several members of the National Music Publishers' Association (NMPA) on Wednesday filed a class action copyright infringement lawsuit against MediaNet, a company that powers digital music services for Microsoft, Yahoo, MTV and others, claiming they failed to obtain proper licenses for use of songwriters' and publishers' works.

Washington - The Copyright Royalty Board (CRB) began hearing arguments from music publishers, record labels, and digital music distributors on Monday, on how much songwriters and music publishers should be paid when music is streamed or downloaded, according to the Hollywood Reporter.

Washington - The Digital Media Association (DiMA), which represents large webcasters like Yahoo, (NASD: YHOO) AOL (NYSE: TWX) and Microsoft (NASD: MSFT), has filed a brief asking the Copyright Royalty Board (CRB) to refer the question of whether or not an interactive music stream needs a separate "reproduction" license, in addition to the performance license they already pay, to the U.S. Copyright Office, Billboard reported. "Digital music services believe that digital performances are like radio and should require a performance license only," DiMA said in a statement, referring to the license that both webcasters and radio broadcasters pay to performing rights organizations ASCAP, BMI and SESAC.

Washington - Large Internet radio purveyors AOL (NYSE: TWX), Yahoo (NASD: YHOO), RealNetworks (NASD: RNWK), Pandora and Live365 earlier this week sent a letter to key lawmakers in Washington, asking them to consider performance royalty parity for broadcast, satellite, cable and Internet radio. The letter was addressed to U.S. House Intellectual Property Subcommittee Chairman Howard Berman (D-Calif.) and Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.), whose committees are currently re-evaluating the broadcast radio industry's royalty rate exemption.

New York - Yahoo (NASD: YHOO) and AOL (NYSE: TW) may shutter their Internet radio services, facing a 38% increase in music royalties at the hands of the Copyright Royalty Board, Bloomberg reports. "We're not going to stay in the business if cost is more than we make long term," Yahoo Music general manager Ian Rogers told Bloomberg. Echoing the same tone, AOL Radio managing director Lisa Namerow told Bloomberg, "If the rates remain as they are, it would be very challenging to sustain a business that is profitable."

Washington - The U.S. Court of Appeals for the District of Columbia has released a briefing schedule for the appeal of webcasting royalty rates filed by various webcasters, which will begin in February but is not likely to be resolved until sometime in 2009, according to the Broadcast Law blog.

San Francisco - New York Senator and presidential hopeful Hillary Clinton expressed support for continued negotiations between webcasters and SoundExchange over royalty rates for streaming music online, in an e-mail reply sent to constituents who queried her on the issue, Wired News reported. "I will continue to monitor this situation with the hope that they produce a fair and equitable resolution for all sides," reads the e-mail from Clinton, published in full on Wired.com. "Please be assured that I will continue to follow this issue closely and that I will keep your views in mind in the future as the situation plays out."

Washington - SoundExchange, the music industry entity that collects and distributes digital royalties, announced yesterday that 24 small webcasters have signed an agreement that would extend the "below-market" music royalty rates they have received since 1998 through the year 2010.

New York - Some involved in the prickly royalty negotiations between music webcasters and the major record labels believe that issues could be resolved as early as the end of September, the Associated Press reported.

New York - The Digital Media Association (DiMA) -- which represents large webcasters like AOL, Yahoo, RealNetworks, Live365 and Pandora -- announced on Thursday that it has reached agreements with SoundExchange on several thorny issues related to the disputed royalty rates for streaming music online.

Washington - SoundExchange, the entity set up by the record labels to collect and distribute digital music royalties, announced on Wednesday that it has offered small webcasters a discounted rate through 2010, under essentially the same terms set out in the Small Webcaster Settlement Act.

Washington - After appearing to have reached a tentative deal last week on one of the more contentious new webcasting royalty rate hikes, the Digital Media Association (DiMA) -- which represents large webcasters like Yahoo and AOL -- said it will not accept an offer from SoundExchange to reduce a minimum per-channel fee cap that includes "unrelated technology mandates that have previously been rejected several times."

Washington - Web radio broadcasters have been given an unexpected reprieve from new royalty rates many said will put them out of business, when the organization set up by record labels to collect digital royalties said in front of Congress on Thursday that it won't enforce the new rates when they take effect on Sunday.

Washington - The U.S. Court of Appeals for the District of Columbia on Wednesday denied webcasters' motions to delay the implementation of new royalty rates for streaming music while their appeal of the rates is heard.